Savers split between ‘rates may rise’ and the ‘not anytime soon’s
The continuing uncertainty over when the record low interest rates might rise has led to a clear split in the behaviour of savers, according to Skipton International. The offshore bank say they are seeing definite patterns in the way their customers are investing.
Jim Coupe, Managing Director, Skipton International, said, ‘We have noticed an obvious divide between those who want to opt for the longer fixed notice accounts, and those who prefer holding their money on variable rate notice accounts. Our savers appear to hold views at the two ends of the spectrum: those who believe rates might rise soon and don’t want to miss out, and those who think they won’t be going up for quite some time. There seems to be very little middle ground.’
Savers have experienced years of record low interest rates, and after high expectations last year that there would be a rate rise in the Spring of this year, commentators are now suggesting it could be as far away as the middle of 2016 after the UK’s inflation rate fell to 0.
‘It’s no surprise that savers are confused,’ adds Jim Coupe, ‘We are being as flexible as we can and offering a variety of competitive accounts to suit needs, including fixed for 18 months and 3 years. We even allow customers to break their notice period free of charge if they transfer their money into fixed rate or longer term notice accounts so that they can gain immediate advantage of the higher rates.’
The Bank of England has hinted rates won’t rise until the spring of 2016 if the UK economy stays on its present course, and the Bank’s Chief Economist has warned that even when rates do start to rise, it could be by just half a percentage point a year.
Skipton International has this year launched a 3 year fixed Bond, maturing 31st May, 2018 with an AER of 2.2% and an 18 month international reserve bond with an AER of 1.75% despite the fact UK Interest rates remain at 0.5%.
For further information or interviews please contact Gwyn Garfield-Bennett at Direct Input. Telephone 44 (0)1534 715411 or email gwyn@directinput.je
Skipton International offers a range of offshore savings accounts and is one of the Channel Islands’ leading mortgage lenders.
In 2014 Skipton International launched a range of mortgages for British expats looking to purchase a Buy-to-let property in the UK.
For more information on Skipton International please visit www.skiptoninternational.com
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